On Wednesday, LightInTheBox Holding (NYSE:LITB) discussed second-quarter financial results during its earnings call. The full transcript is provided below.

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The full earnings call is available at https://edge.media-server.com/mmc/p/nagopys6/

Summary

LightInTheBox Holding reported a 3% increase in revenue year-over-year for the first half of 2026, reaching $108.8 million, with net income growing by 28% to $2.7 million and adjusted EBITDA improving to $3.3 million.

In Q2, revenue declined by 4% to $57 million due to phasing out long-tail products amidst a challenging external environment, but gross margin remained stable at 66.1%.

The company is focusing on evolving into a consumer lifestyle company, emphasizing AI integration to better anticipate consumer needs and enhance product discovery, personalization, and creation.

Operating expenses in Q2 decreased by 4% to $35 million, contributing to net income of $1.6 million, despite geopolitical disruptions and foreign exchange headwinds.

The company continues to develop its proprietary apparel brands, with plans to potentially add one to two new brands annually to enhance its brand matrix.

Full Transcript

OPERATOR

Hello, ladies and gentlemen. Thank you for standing by for LightInTheBox Holding's second quarter 2026 earnings conference call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Serena Huang. Please go ahead, Serena.

Serena Huang, Investor Relations

Thank you, operator. Hello, everyone, and welcome to LightInTheBox Holding second quarter 2026 earnings conference call. The company's earnings results were released via Newswire Services earlier today and are available on the company's IR website at ir.ador.com. On the call from LightInTheBox Holding today are Mr. Jian He, CEO, and Ms. Wendy Liu, CFO. He will provide an overview of the company's Q2 highlights, followed by Ms. Liu, who will go over its financial results.

Following our prepared remarks, we will open the call to questions. Before we proceed, please note that today's discussion may contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the company's current expectations. To understand the factors that could cause results to materially differ from those in forward-looking statements, please refer to the company's Form 20-F filed with the SEC.

The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that LightInTheBox Holding's earnings press release and this conference call include discussions of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. Please refer to the company's earnings press release, which contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures.

Now I'd like to turn the call over to LightInTheBox Holding CEO Mr. He. Please go ahead.

Jian He, CEO

Good morning and good evening, everyone. Thank you for joining LightInTheBox Holding's second quarter 2026 earnings call. We are pleased to report excellent results for the first half and the second quarter of 2026. Our first half results provide a clear view of the progress we are making. Revenue increased 3% year over year to 108.8 million. Net income grew by approximately 28% to 2.7 million. Adjusted EBITDA also improved to 3.3 million. In the second quarter, revenue declined modestly as we phased out long-tail products.

Despite a challenging external environment, gross margin remained resilient at 66%. Through disciplined expense management, we remained profitable, delivering net income of 1.6 million and adjusted EBITDA of 1.9 million. Over the past several years, we have steadily reshaped LightInTheBox Holding and laid the foundation for sustainable, profitable growth. From 2023 to 2024, we invested in our proprietary apparel brands and strengthened our in-house product development and production capabilities.

These investments gave us greater control over product differentiation, quality, and speed to market. In 2025, we made meaningful progress in evolving the LightInTheBox Holding online platform into a consumer lifestyle company. By developing a deeper understanding of consumer preference and sentiment, we delivered differentiated products, the first engagement, and built stronger emotional connection with consumers. This year we are seeing another important shift.

AI is rapidly becoming embedded in how people work, communicate, create, and make decisions. We believe they are transforming not only how consumers discover, evaluate, and purchase products, but also what they value and seek in their daily lives. As technology becomes more deeply integrated into everyday life, we believe the desire for emotional connection, self-expression, individuality, a better quality of life, and memorable experiences will become even more important.

As a lifestyle company, we are well positioned to address these evolving needs. Our transformation for the AI era goes beyond adopting new technology tools. It requires a deeper understanding of consumer intent. Our AI strategy will focus on using technologies to anticipate evolving consumer needs and connect them more effectively with product discovery, personalization, and creation. At the same time, we will continue to evolve our product strategy around enduring human aspiration for self-expression, emotional value, and memorable experience.

With that, I will now hand the call over to Wendy to go through our financial results.

Wendy Liu, CFO

Thank you, Mr. He. Good morning and good evening, everyone. Before we go over our financials, please note that unless otherwise stated, all figures are presented in US dollars. In the second quarter, our total revenues were 57 million, a modest 4% decrease year over year, as we deliberately phased out long-tail products. This quarter was affected by a challenging external environment. Geopolitical disruptions increased pressure on cross-border logistics and related costs, while the weaker US dollar created additional foreign exchange headwinds for our global operations.

Despite these factors, gross margin remained very stable at 66.1%, compared with 65.9% a year ago, reflecting our continued efforts on higher-margin lifestyle products. Total operating expenses in the second quarter decreased by 4% year over year to 35 million, of which fulfillment expenses decreased by 3% to 4 million, selling and marketing expenses decreased by 4% to 27 million, and G&A expense decreased by 5% to 5 million. Total operating expenses as a percentage of revenue decreased from 63% to 62%.

Our net income in the second quarter reached 1.6 million, compared to 2 million in the same quarter last year. This concludes my remarks. We are now open to your questions. Operator, please continue.

OPERATOR

Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. We will now pause momentarily to allow questions to register. Thank you. Your question comes from Cyril Du King, a private investor. Please go ahead.

Cyril Du King, Private Investor

Hi team. Thanks for taking my call. I have questions relating to two topics, and the two topics are insider ownership and your brand matrix strategy. And I'll start with the first topic. I would appreciate if you could provide an update on how many shares are in the public float and how much do insiders own of the company.

Wendy Liu, CFO

Thank you for your question related to insiders' share percentage. You may refer to our IR website for more details.

Cyril Du King, Private Investor

Okay, thank you.

OPERATOR

Thank you.

Cyril Du King, Private Investor

Yes, I'll go ahead and ask. My second question was concerning the brand matrix strategy. At an investor conference earlier this year, the company stated that its three brands are Adore, Miss Glamour, and A Skull. And I was wondering if you could provide, you know, any details about any of the brands. And also you mentioned potentially adding, you know, maybe one to two brands a year if you find the right market and just would appreciate any thoughts about plans for new brands in this year or the next.

Thank you.

Wendy Liu, CFO

Thank you for your question. For these three brands, we do see good progress in terms of top line as well as bottom line, and we do see repeated purchase rate increasing. So these three brands are progressing really good. At the same time, we are preparing other brands as well to enhance the brand matrix.

Cyril Du King, Private Investor

Thank you.

OPERATOR

Thank you. There are no further phone questions at this time, and that does conclude our conference for today. Thank you for participating. You may now disconnect.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice.